The earliest commercially successful electric motors date back to the latter part of the 19th century when Nikola Tesla patented his induction motor in 1888. The development of fractional horsepower motors however would not have taken place without the push toward urban, and later rural, electrification, using alternating current. Electrification began in cities around 1915 and with electrification so too came the potential market for washing machines, refrigerators, vacuum cleaners and a host of other commercial appliances. This was recognised by major manufacturers, like Westinghouse and General Electric, who were already in the business of manufacturing large motors for industrial installations. By 1920, over 500,000 fractional horse-power motors were powering washers and other appliances in America.

After the second world war the demand for FHP motors grew, particularly throughout the consumerist boom of the 1950s and 60's. Today the European FHP market is worth an estimated $4.5 billion with some 300 million units in manufacture.